Colorado Real Estate Journal - October 21, 2015
Greystone, a real estate lending, investment and advisory company based in New York City, recently originated a $36 million commercial mortgage backed securities loan for an upscale, mixed-use development in Avon, at the base of Beaver Creek. The loan refinances two adjoining properties, Chapel Square and Benchmark Center, with almost 200,000 square feet of retail and office space. The 10-year loan is interest only for the first three years with a 30-year amortization. The center is 99.7 percent leased with 44 tenants. Wells Fargo is one of the anchor tenants in the center. The center was purchased last year by Hoffman Commercial Real Estate of St. Louis. The refinancing was arranged by Ted Nasca, a managing director at Greystone. “This is the largest retail project we’ve done in our CMBS portfolio,” Nasca said. It also is the largest deal it has done in the Colorado mountains, he said. Why was Greystone drawn to the deal? “No. 1, we love the location,” Nasca said. “It is a great tourist location, but it also has seasonal and year-round residents.” Hoffman Commercial, headed by Jon White, plans to open a movie theater in the center by the end of the year, he noted. “We’re really excited about that and the city is really excited about the Avon Theater,” Nasca said. The Benchmark was built between 1988 and 1999 and was renovated in 2003. Chapel Square was built between 1976 and 1989 and was renovated in 2014 by Hoffman Commercial. The refinancing did not include the condo/hotel rooms in the development. “But they add value to the entire center,” Nasca said. Last year, Greystone originated about $4.5 billion in loans across the U.S. Greystone is eager to make more loans in the mountains and the Denver area. “Colorado is a good market,” Nasca said. Over the years, Greystone has been involved in a number of apartment deals in the Denver area. “Greystone is one of the top multifamily lenders in the country and multifamily right now is one of the hottest asset types,” Nasca said. Other News Las Vegas-based Full House Resorts has agreed to pay $30 million to the privately held Pioneer Group Inc. for its Bronco Billy’s Casino and Hotel in Cripple Creek. Bronco Billy’s has about 830 slot and video poker machines, 13 table games, a 24-room hotel, a steakhouse, four casual dining restaurants and an outdoor amphitheater. “We look forward to adding Bronco Billy’s Casino and Hotel to the Full House portfolio,” said Daniel R. Lee, president and CEO of Full House Resorts. “We see potential for growth at Bronco Billy’s as the property benefits from a full year of its recently completed expansion,” he said. Long term, he said there is potential to grow the size of the operation on surrounding land. It purchased a 2.3-acre surface parking lot in May. It owns most of the block along Bennett Avenue and has ownership rights to portions of the block it does not own. Bronco Billy’s is considered one of the two top casinos in Cripple Creek.